Sh5.6 billion teachers’ medical scheme to resume, TSC has two weeks to finalise

Teachers demonstrates near Harambee House that houses the office of Education cabinet secretary Jacob Kaimenyi. Photo: FILE/STANDARD

NAIROBI: More than 288,000 teachers now have a reason to smile as the Procurement Review Board reversed cancellation of Sh5.6 billion medical cover tender that was terminated by their employer last month.

Teachers Service Commission (TSC) now has up to two weeks to complete the procurement process of the robust medical scheme that would see teachers get up to Sh1 million in-patient cover.

The ruling of the Public Procurement Administrative Review Board (PPARB) also means that teachers now stand to benefit from dental, optical and maternity cover as well as a ‘last expense cover’ pegged at a flat rate of Sh100,000.

Blatant disregard

“The board directs the procuring entity to enter into and execute a contract with the applicant AON Kenya Insurance Brokers Limited and complete procurement process relating to the subject tender in accordance with relevant provisions of the Public Procurement and Disposal Act within 14 days from the date thereof,” said Paul Gicheru, PPARB chairperson.

The verdict delivered Friday revealed blatant disregard of procurement laws by the teachers’ employer and accuses TSC commissioners of interfering with the tendering process.

In its tough ruling, the board rejected all the three grounds fronted by the TSC to terminate the tender award to AON and blamed the events leading to tender cancellation on ‘disagreements by the various organs of TSC.’

“This state of affairs is not healthy, especially where it involves the rights of third parties or the rights of a large section of members of the public such as teachers and their dependents’,” said Gicheru.

The board also cited lack of relevant minutes necessitating termination of the tender and also found that the tender committee was infiltrated by ‘strangers.’

“In view of the boards finding that there are no minutes evidencing the termination and in view of the boards further finding that strangers were allowed to participate in meetings leading to the purported termination as contained in the letter dated January 16, 2015 together with all the reasons contained therein a nullity abinitio,” reads the boards verdict.

TSC cited alleged conflict of interest, failure to meet tender specifications by AON and alleged variation of specifications by the insurance firm in terminating tender.

In its tender termination letter, TSC said AON had inside information that put it ahead of the rest of bidders. The teachers’ employer argued that this amounted to conflict of interest.

The teachers’ employer argues that AON had access to critical information of budgetary allocation designed for the medical scheme.

The review board, however, said the TSC did not produce any evidence to show that it had entered into a contract with AON relating to the conceptualisation of the alleged scheme.

“The board further finds that if this was true, this issue was alive during evaluation and it was the duty of the tender processing or evaluation committee to deal with it during evaluation but not that of the commissioners or any other officer or employee of the procuring entity who were not members of any committee...,” said Gicheru.

Provide evidence

The board also said TSC failed to provide any evidence to back their claim that AON failed to meet specifications set out in the tender document and the alleged variation of the specifications.

The board termed as ‘afterthought’ the reasons advanced by the TSC to terminate the tender.

“It is premature for procuring entity to allege that the applicant (AON) has made variations in the tender documents when a contract pursuant to the tender has not been executed,” reads the verdict.

The board found that TSC commissioners illegally meddled with the tender process.

The document names Nancy Macharia, Cheptumo Ayabei, Josephine Maundu, Ibrahim Mumin, Agnes Gatere and the Tender Processing Committee members as the legitimate members constituted by the tender committee to spearhead negotiations.

“The board has not been able to find any document that appointed the Commissioners of TSC as part of the procuring entity’s tender evaluation committee or the negotiation team. It was, therefore, improper for commissioners or any officer or employee of TSC to interfere with the functions of the tender process,” said Gicheru.

Cleopas Tirop, Salome Gichura and Saadia Kontoma are the current TSC Commissioners. Lydia Nzomo is the commission’s chairperson.

Expressly permitted

The board said TSC, on more than two occasions, invited strangers to attend meetings ‘ostensibly to discuss certain issues relating to the award of the subject tender to the applicant.’

“The board finds that provisions of section 26 of the Act and Regulation 10 and 11, does not permit persons who are not members of the tender processing or evaluation committee to participate in a process unless their participation is expressly permitted,” said the board.